Tips to Boost your eBucks - 1 July 2019 to 30 June 2020

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GrootBaas

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May 25, 2006
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I know it's a bad idea to ask for financial advice here, but I don't care.

Haven't done the TFSA yet and thought of going with FNB to make life a bit easier for now for ebucks level. Any thoughts on the TFSA products that FNB offers. Any comments appreciated for example returns, fees etc.

Noticed they have 3 categories:
Cash deposit
Shares
Unit Trusts
 

Snyper564

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Joined
Oct 1, 2008
Messages
12,499
I know it's a bad idea to ask for financial advice here, but I don't care.

Haven't done the TFSA yet and thought of going with FNB to make life a bit easier for now for ebucks level. Any thoughts on the TFSA products that FNB offers. Any comments appreciated for example returns, fees etc.

Noticed they have 3 categories:
Cash deposit
Shares
Unit Trusts
Maybe ask in a new thread it might be missed here.
 

mr_norris

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Joined
Jun 12, 2007
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3,699
I know it's a bad idea to ask for financial advice here, but I don't care.

Haven't done the TFSA yet and thought of going with FNB to make life a bit easier for now for ebucks level. Any thoughts on the TFSA products that FNB offers. Any comments appreciated for example returns, fees etc.

Noticed they have 3 categories:
Cash deposit
Shares
Unit Trusts

My thoughts, and why I use EE rather than FNB:

* Cash: IMO a TFSA is better used for equities. Even more so for foreign ones. You aren't bound to having a large portion of your TFSA portfolio in local stuff like an RA, so IMO, it's a great way to take advantage of the foreign market. If you want to earn interest on money, rather use a savings account. The first R23800ish in interest is tax free anyway. The interest you earn here is also rather meh. You max out a 6.65%. MEH.
* Shares: The seem to be limited to Ashburton Top40 and Midcap here. All local. No thanks. I'd rather use a normal EE ZAR account for local stuff. On top of that, they have a monthly account fee. Yes, it starts off at 0.50% PA, but why get charged a monthly fee if you don't have to?
* Unit Trusts: Same gripe as shares when it comes to exposure. It doesn't look like there is a monthly fee associated with this (unless I can't find it), just fees with the underlying investment and probably transaction fees, which is normal.

But in the end, it all comes down to risk and what you feel comfortable with. I would encourage you to rather do something else to bump up a level (overdraft trick, or change to fusion) and rather open up a TFSA with a different provider, like Easy Equities.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,633
I know it's a bad idea to ask for financial advice here, but I don't care.

Haven't done the TFSA yet and thought of going with FNB to make life a bit easier for now for ebucks level. Any thoughts on the TFSA products that FNB offers. Any comments appreciated for example returns, fees etc.

Noticed they have 3 categories:
Cash deposit
Shares
Unit Trusts

My honest advice related to savings (normal and TFSA) shop around. If you are looking at a TFSA account (banks charge a fee where other financial firms doesnt charge 1c) and you only pay brokerage fees. And if you are savy, you can pay R0 on brokerage fees when buying EFT's

I was very much "pro saving" into FNB products. What a fool I was. You can do much better than what FNB offers
 
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X-Gamer

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Apr 24, 2009
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Has anyone found another way to pay for fuel, maybe appearing as in-store spend, after the monthly engen cap is reached?
 

GrootBaas

Expert Member
Joined
May 25, 2006
Messages
1,133
My thoughts, and why I use EE rather than FNB:

* Cash: IMO a TFSA is better used for equities. Even more so for foreign ones. You aren't bound to having a large portion of your TFSA portfolio in local stuff like an RA, so IMO, it's a great way to take advantage of the foreign market. If you want to earn interest on money, rather use a savings account. The first R23800ish in interest is tax free anyway. The interest you earn here is also rather meh. You max out a 6.65%. MEH.
* Shares: The seem to be limited to Ashburton Top40 and Midcap here. All local. No thanks. I'd rather use a normal EE ZAR account for local stuff. On top of that, they have a monthly account fee. Yes, it starts off at 0.50% PA, but why get charged a monthly fee if you don't have to?
* Unit Trusts: Same gripe as shares when it comes to exposure. It doesn't look like there is a monthly fee associated with this (unless I can't find it), just fees with the underlying investment and probably transaction fees, which is normal.

But in the end, it all comes down to risk and what you feel comfortable with. I would encourage you to rather do something else to bump up a level (overdraft trick, or change to fusion) and rather open up a TFSA with a different provider, like Easy Equities.


My honest advice related to savings (normal and TFSA) shop around. If you are looking at a TFSA account (banks charge a fee where other financial firms doesnt charge 1c) and you only pay brokerage fees. And if you are savy, you can pay R0 on brokerage fees when buying EFT's

I was very much "pro saving" into FNB products. What a fool I was. You can do much better than what FNB offers

Thanks for the feedback, exactly what I was looking for. Noticed there are some other threads on this as well so will have a look there.

I don't need this for ebucks level, would've just given some buffer should I forget to do the app transactions in a month or whatever. But seeing that the general consensus is to not use a bank for TFSA it makes more sense to shop elsewhere. Do have an Easy Equities account, will go and see what they offer.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,633
Thanks for the feedback, exactly what I was looking for. Noticed there are some other threads on this as well so will have a look there.

I don't need this for ebucks level, would've just given some buffer should I forget to do the app transactions in a month or whatever. But seeing that the general consensus is to not use a bank for TFSA it makes more sense to shop elsewhere. Do have an Easy Equities account, will go and see what they offer.

My honest advice related to a TFSA -> buy 100% offshore (to max your exposure).
 

Mylky

Well-Known Member
Joined
Oct 12, 2016
Messages
103
I know it's a bad idea to ask for financial advice here, but I don't care.

Haven't done the TFSA yet and thought of going with FNB to make life a bit easier for now for ebucks level. Any thoughts on the TFSA products that FNB offers. Any comments appreciated for example returns, fees etc.

Noticed they have 3 categories:
Cash deposit
Shares
Unit Trusts

Totally agree with what @zerocool2009 and @mr_norris said.

To add, I had my tfsa with fnb until treasury allowed transfers, only the first year's contribution (because I procrastinated to the last minute that tax year and FNB opens it instantly on the app verses waiting for FICA and hoping funds reflect in the receiving account in time after FICA with a broker). I regretted it but it served its purpose since I didn't want to lose that year's allocation while getting my stuff together. My experiences: (I had the share account)

1. Those monthly account fees started getting really annoying, especially once I opened my EE TFSA and saw that I could have the exact same investments without those charges. It wasn't a monumental amount, but seeing the transaction every month in 22seven was enough to put me off.

2. Don't know if it's changed now but their methodology for investing your TFSA used to be baffling. They invested in cheap Ashburton ETFs (good) but there were only two options and you couldn't customize (bad). It was ASHT40 and ASHMID so the top 100 JSE SA Inc shares. Great if that's what you're going for but there's no flexibility if you're not, like if you're looking to diversify geographically.

3. Linked to the above, they just buy a 50:50 of ASHT40:ASHMID. So it's never really predictable, whatever is happening you'll always get as many of one as you will of the other (quantity wise, not rand wise). That's too much midcap for my liking but ymmv.

4. Lastly but most important to me: FNB makes you disinvest to transfer to another provider. After waiting for years for treasury to allow transfers, FNB found a way to punish anyone who wants to transfer without actually breaking the law by levying a penalty. If you want to transfer your TFSA, FNB makes you sell all your units and sit in cash for the week(s) it takes them to do some paperwork. I'm serious. They refuse to transfer your shares/ETFs/Equities like normal people. Staying invested is key for anyone with a long term outlook, some of the biggest gains (and losses) that determine a portfolio's success happen over a few random days that nobody can preselect. On principle I don't invest with institutions that levy penalties that weren't disclosed upfront. And be sure, making you move to cash is a penalty. They keep that cash in the tax free wrapper at least, but what good is cash earning almost no interest in an account meant for long term investing?

So that's just a few pointers from my experience. Use banks for banking and then run for the hills. The TFSA simply wasn't worth it for me, and I haven't even touched on the actual cost of investing itself (the ETFs are cheap, buying them not so much).

Good luck!
 
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